Austria's Raiffeisen does not rule out interest in Serbia's Komercijalna Banka

VIENNA (Reuters) - Serbia and its banking market have developed well in recent years and still show potential, the chief executive of Austria’s Raiffeisen Bank said when asked whether the lender might be interested in buying Komercijalna Banka.

Serbia wants to privatize the Balkan country’s second-largest lender as part of a program between Belgrade and the International Monetary Fund (IMF).

The Austrian lender, which operates across eastern Europe from the Czech Republic to Russia and down to the Balkans is considering acquisitions to expand in its main markets.

It holds assets of 2.5 billion euros ($2.82 billion), or 1.8 percent of its total, in Serbia.

“You cannot say anything regarding Komercijalna now... you can only say something when the owners decide if there is a (sale) process, and what the process will look like,” Johann Strobl said at a news conference in Vienna.